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SHRM-CP Certification Exam Questions 2023 - Day 21

Jenny Clarke

Mon, 24 Mar 2025

1. An applicant from a local competitor has offered to give the HR director information on the previous employer's salary and benefits upon hire. What action should the HR director take in response to this offer?

A) A. Use this information to help create a strategy to reduce turnover to other companies.
B) B. Decline the candidate; however, offer compensation in exchange for the information.
C) C. Do not hire the candidate, indicating that the company does not participate in unethical behavior.
D) D. Ask for the information to create a more robust retention strategy once the person is hired.



2. Based on the current turnover and lack of management training, what should the HR director do first as part of a needs analysis?

A) A. Facilitate management focus groups to evaluate the company's compensation, rewards, and incentive programs.
B) B. Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate.
C) C. Analyze exit interviews from managers who have left recently to determine why they are leaving.
D) D. Review customer satisfaction results and use these to guide the development of the training curriculum.



3. An HR data analyst uses internal and external data and translates it into meaningful information to support an operations decision to relocate a distribution center to another state. What term best describes the data analyst's activity?

A) Delphi technique
B) Business intelligence
C) Regression analysis
D) Root cause analysis



4. What are the key components of a business intelligence system?

A) Data gathering, data warehousing, query and reporting
B) Input, processing, output
C) User interface, access to the Internet, integrated database
D) Accuracy, currency, and completeness



5. Strategic Alignment and Assessment of Resources What budgeting method is based on how much it costs to perform different enterprise activities and allocates funding according to the strategic significance of the activities?

A) Activity-based
B) Incremental
C) Formula
D) Zero-based



6. An HR specialist prepares a business case to support an initiative. The case includes descriptions of the project's goals, benefits, method, budget, and time line. Which information is required to complete the business case?

A) Communication plan the project team will use
B) Detailed description of the methodology that will be used
C) Endorsements from organization stakeholders
D) Analysis of the initiative's possible risks



7. What financial document lists the revenues, expenses, and profits of an organization for a designated period of time?

A) Financial statement
B) Accounting entries
C) Balance sheet
D) Income statement



8. Refer to the following scenario for the next 4 questions. A small company is in the start-up phase of the organizational life cycle. The owner has been hiring talent and compensating employees at high levels but not offering a benefits package. As the organization grows and more employees are hired, the owner is being pressured to implement a benefits package in addition to direct compensation. The owner is not knowledgeable about benefits and has made the decision to hire an HR generalist to handle benefits and other HR functions. The HR generalist's first priority is to make recommendations about a benefits package that will attract and retain top talent while being fiscally responsible. The growth plan for the organization is to grow globally and engage in a global recruitment, selection, and hiring strategy. The HR generalist needs to create a total compensation package that will be relevant in all locations globally. The HR generalist is charged with recommending a benefits package that will attract and retain talent. How should he begin the process?

A) A. Contract with a third-party benefits administration company to identify and implement a benefits package.
B) B. Gather data through a needs assessment to identify what benefits are needed and match them to the overall organizational strategy.
C) C. Survey all employees in the company and, based on their responses, implement and secure benefits plans to meet majority needs.
D) D. Set up employee task force groups to develop outlines of the employee benefit plans most desired by the workforce.



9. The HR generalist has conducted an employee survey asking questions about the types of benefits employees want. The survey results indicate that employees are seeking ways to balance their work life with their home life. How should the HR generalist handle this feedback?

A) A. Review external surveys to determine the types of work/life benefits other organizations offer.
B) B. Because this is an internal survey, no one is expecting any action to be taken, but it is good for the company to solicit input.
C) C. Recognize that these types of benefits are appreciated by employees, but a growing organization cannot afford them.
D) D. Align offered benefits with the organizational strategy, culture, and employee desires.



10. A new employee is hired who is not married but who has a domestic partner. Currently, the organization's health insurance covers spouses but not domestic partners. The new employee has requested that the partner be covered through the organization's health insurance. How should the HR generalist handle the request?

A) A. Audit the current policy for fairness and present a business case to the owner to change the rule.
B) B. Allow the employee to add the domestic partner to the health insurance; enroll the partner as a spouse.
C) C. Contact the insurance company and change the policy to allow domestic partners to be covered.
D) D. Tell the employee to contact the insurance company since HR can't do anything about it.



1. Right Answer: C
Explanation: C is the best answer. The applicant is using leverage to get a position. Once hired, this person may use similar tactics in the new workplace. Moreover, hiring the applicant would be unethical. A is incorrect. Selection determinations should be based on who is best qualified and not on a perceived unethical bribe. B is incorrect. This would be an unethical decision and could impact the company's reputation and brand. D is incorrect. Although this applicant may be the best qualified, there are still concerns about behavior in asking for a position based on offering confidential information.

2. Right Answer: B
Explanation: B is the best answer. This should always be the first step in designing any training. Having a good understanding of the job is a critical piece of training design. A is incorrect. While compensation should be reviewed, this does not directly address the needs of the management training program. C is incorrect. While this is a good strategy, it should not be the first option to be considered. D is incorrect. Reviewing customer satisfaction surveys would assist more in employee development and training but perhaps would not address the higher-level management concerns.

3. Right Answer: B
Explanation: Business intelligence allows analysts to retrieve timely, accurate, and complete data and transform that into accurate, actionable information to support decision making.

4. Right Answer: A
Explanation: A business intelligence system has three components: a means to gather information from various data collection points, a secure means of storing or warehousing data so that it is available to users, and the means to analyze the data via queries and reports.

5. Right Answer: A
Explanation: Activity-based budgeting recognizes the interrelationships among various activities required to create value in an organization. It is based on how much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities.

6. Right Answer: D
Explanation: The business case should include some discussion of possible risks and approaches to managing them. Detailed descriptions and plans are not appropriate for this audience. Endorsements are not usually part of a business case, but it would certainly be a good idea to encourage supporters to communicate to management their reasons for support.

7. Right Answer: D
Explanation: The income statement shows revenues, expenses, and profits for the organization. The balance sheet shows its assets, liabilities, and shareholders’ equity.

8. Right Answer: B
Explanation: B is the best answer. The needs assessment is the first step. This will identify the benefits required and those that are consistent with the mission of the organization. A is incorrect. The HR generalist was hired to manage the benefits, not outsource. A needs assessment can be completed by an in-house HR professional. C is incorrect. Although soliciting input from the employees could be a part of the assessment process, a benefits package cannot be implemented based on that data only. D is incorrect. This may be completed later, after the needs assessment.

9. Right Answer: D
Explanation: D is the best answer, since it ensures that the benefits match the organization's strategy and culture. A is incorrect. This does not necessarily identify the benefits that are compliant and that match the organization's strategy and culture. B is incorrect. The opinions of the employees should be recognized and taken seriously, and, if the requests fit the strategy of the company and are legally compliant, then there should be a genuine attempt to incorporate those suggestions into the benefits package. C is incorrect. This is an opinion and does not indicate that the HR generalist has done any research.

10. Right Answer: A
Explanation: A is the best answer. Through research, the HR generalist can learn the reason for the rule. Then, if possible, he can present a business case to change the rule if it makes good business sense. B is incorrect. Not only is this unethical; it can be considered insurance fraud. C is incorrect. Before making the change, the HR generalist needs to determine why the rule exists. D is incorrect. The HR person should conduct the research in order to assess whether adding a domestic partner is feasible.

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